澳洲Australia property Insuring a Property | Sydney


在澳大利亚 Hi all, I currently have a PPOR and 10K cash in the bank which I plan to use as a deposit for a IP early next year. Is it possible for me to place this into my PPOR loan and then redraw the 10K when Im ready for the IP and then claim the int Hi Guys, Ive found a property that has mentioned two payments coming up of $1400 to apparently top up the admin fund and 2 have just been paid. Im looking at a financial statement (basically a balance sheet) for the strata and its all a bit


Hi all,

I recently bought my first property. My partner rang a large insurance company to find out about insuring it.

Being naive, I thought it would be like insuring the car! :eek:

They said they don't really know how much to insure it for and they couldn't give any answers. Now, if they don't know who does!?

My question is, how do I work out how much the value of the property is so I can insure it. Or am I on the wrong track? I guess I need to come at the whole thing from another angle - one that insurers relate to. I'm confused! :confused:

Any suggestions?

Cheers,

Mark  

评论
Talk to a builder or QS about how much it would cost to rebuild your place per square metre, add on extra if you've got higher quality inclusions, add on for demolition and removal of debris.

How's your insurance company going to know? It hasn't seen the place and whatever they tell you you're going to be upset if they underestimate and you're out of pocket with a claim or if they overestimate and you pay extra premiums.

Last year I purchased established house and land for $237K. I looked around and thought I'll insure for $250K to replace. My lender required insurance for $275K  

评论
Insurance

Hello there

I used to work for an insurance company for home & contents insurance. Most insurance company's website would have a building and contents insurance calculator. Just work out the size of your house excluding your land in sqm. You can check out www.comminsure.com.au - go to calculator.

Hope this helps

Cheers
Jas  

评论
Also just to add that there are only 2 insurance companies ie AAMI and CommInsure that I know of has "Total Replacement cover" - check out the same website provided to find out more.  

评论
Thanks for the replies, advice and suggestions.

Cheers,

Mark  

评论
Just one more question: Do most people get total replacement cover or do most go for other options - contents insurance, for example?

Any suggestions on what to use?  

评论
ledd said: ↑
My question is, how do I work out how much the value of the property is so I can insure it.Click to expand...
Hi Mark

Unless you have won Tattslotto you will probably be mortgaging the property as security for the loan.

When the Valuer attends the property he/she will value the property for Current Market Value (as security for a loan) and will also provide an Insurable Value.

This amount will be quite different to the sale / market value, as you (a) don't insure the land, and (b) insurable value is about replacement value ie if all improvements on the property were fully destroyed, then the amount of money needed to clear the site, draw up new plans, get permits, and restore the property to how it was before damage including driveways and fences etc

So don't worry too much, your lender will tell you how much to insure the property for and you will be required to provide them with a Certificate of Currency of Insurance on or before settlement

Hope this helps

Kristine  

评论
Kristine, l have never been able to get the lender or their valuer to disclose their value for a ip. Do they just state on their documents that the property must be insured for x amount of $s?
cheers yadreamin  

评论
House Insurance

Ledd, Daryl & I have been active builders for many years; about 3 years ago we started contracting to IAG which deal with CGU, RACV, SGIO, GIO and a few more that change names between states. We also attend sites for a few loss adjusters and private insurance firms so I will share a little of what I have gleaned over the years from the experience.

1. Most people will insure a property for what they bought it for NOT what it would cost to replace. The bank won't care as long as their risk is covered! We attended a total loss fire in Dimboola (Wimmera Vic) and the couple had insured their house on the river for the price it would sell for; when it burnt down they couldn't afford to rebuild the same country homestead on their land on the river. All they could afford was a small unit or to move into town.

2.Most people don't include the cost of all structural features on a property like fences and sheds (however small); in the event of a fire which destroys all of a house but leaves the other structures intact MOST policies will deduct the value of the replacement of the remaining structures from the payout and give you the balance. This is the single most important reason to correctly value your entire property and the structures that are covered within it. We attended a house fire in Swan Hill a couple of years ago and the couple had a 6 year old house which was totally destroyed by fire, their policy was for 400k but they had a shed with inground pool valued by the bank at over 100k and the most the bank would offer the owners was the total amount insured less the cost of the shed that was undamaged = $300k. Their reason is that you insure the total property and include in your amount the replacement of all structures within it, so if some are left undamaged a claim is paid pro-rata. So be careful.

3. Some insurance policies will deduct the cost of demolition, removal of debris and drafting/permits etc from the total amount insured so read the fine print in your policy and if this is assumed to be included in your insured amount, make sure you add at least another 20-30k on your insured amount to cover the costs (varies with age of house/location/asbestos etc).

4. If you want an idea of how much it will cost to rebuild a house in your area have look at the spec home prices in your paper, it will be close enough. Just check to ensure that any fencing etc is included and some landscaping if it is applicable with your policy.

Yadreamin, a friends father is a valuer and he said that they are only obliged to disclose the value to the person/s who engage and paid for the valution. My bank drove by our place and valued it from the side of the road; I wanted my own idea of the price so I engaged my own valuation to be done (65k more than the banks) and presented it to the bank. The bank manager was suprised and said that if I had the valuers make the valuation out in their name they would take it on board as the official value. Even though I still paid for it that $330 was money well spent, as it enabled me to have a deposit available for another property.

Hope this helps. :D  

评论
JFisher, thank you so much for your detailed response. I certainly learnt from it! I ended up going with CGU. I'm a little cautious so I'm guessing my property is definitely not under-insured. It's around $30 more per year to insure for about 30K more insurance than I originally was going to do so I went with that. I guess I can readjust that next year if need be.

Cheers,

Mark  

评论
ledd, what's 30$ in the big scheme of things ? :)  

评论
TheCamel said: ↑
ledd, what's 30$ in the big scheme of things ? :)Click to expand...
If you re-read my message you'll find that's my point! :confused:  

评论
ledd said: ↑
JFisher, thank you so much for your detailed response. I certainly learnt from it! I ended up going with CGU. I'm a little cautious so I'm guessing my property is definitely not under-insured. It's around $30 more per year to insure for about 30K more insurance than I originally was going to do so I went with that. I guess I can readjust that next year if need be.

Cheers,

MarkClick to expand...
No worries Mark, and yes I would check out the house prices in your IP's area every year so when it comes time to renewal you can adjust the price to account for all those things that seem to go up regularly!

Julie  

评论
Thanks JFisher for your detailed response.
I was told years ago about making sure one insures their property enough to cover demo and removal.
ITs all too often overlooked.
The shed and fence statement was a bit of a shock though.
cheers yadreamin  

评论
yadreamin said: ↑
Kristine, l have never been able to get the lender or their valuer to disclose their value for a ip. Do they just state on their documents that the property must be insured for x amount of $s?
cheers yadreaminClick to expand...

Just went through some old documents and Yes l did find that the lender had stated the property must be insured for at least x amount of $s. Pleased to see l have always insured it well above that amount.
cheers yadreamin  

Property Investment

Australia property Selling Hints | Sydney

澳大利亚Hi folks I recall ready somewhere about what are some simple tricks for making your place more attractive during a home open. Im seriously thinking of selling my little pad and want to maximise my efforts. Any hints greatly appreciated. 评论 ...

Property Investment

Australia property Re-zoning | Sydney

澳大利亚What would the chances of a NSW Local Council allowing a community titled development (homes, community buildings, etc) on an area zoned Protected Agricultural land? Does anyone have experience in this area? Looking at the local council LEP, ...